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Daycare and Taxes All things related to Taxes and running a Daycare post here. Topics of tax exemptions, forms, filings, tax write offs, IRS etc.

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Old 07-09-2020, 07:43 AM
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CherylCantrell CherylCantrell is offline
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Default Reload This Page Tax Questions From a Pet-sitter (Paying, Rent, Taxes, Deposit

Hello tax experts I have several questions I can't ask IRS since their tax help is closed due to C.OVID. I'm doing my own taxes via turbo tax and don't have the money to spend on an accountant this year. Here goes... I often have dogs over for doggie day care and overnight boarding and they have the run of my apt. (1) Since this is a business use, should I increase my office size to reflect the boarding aspect? For instance 10% of my home used as an office for paperwork and web design, but with the dog activity I'd conservatively increase this to 25%, if it's allowable Until recently, I worked up to 16 hours a day, from my morning dogsit away to my evening dogsit away. (2) When I don't have time to make it home for meals, are those purchased allowable as business expenses? Lastly (3) some of my clients have continued to send money since my business declined due to covid. I haven't provided services in exchange, and a few clients I haven't worked for in months. Would these be considered tips or gifts? Thanks so much for any help you can offer!!
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Old 07-10-2020, 07:21 AM
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TomCopeland TomCopeland is offline
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Default Deductions

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Originally Posted by CherylCantrell View Post
Hello tax experts I have several questions I can't ask IRS since their tax help is closed due to C.OVID. I'm doing my own taxes via turbo tax and don't have the money to spend on an accountant this year. Here goes... I often have dogs over for doggie day care and overnight boarding and they have the run of my apt. (1) Since this is a business use, should I increase my office size to reflect the boarding aspect? For instance 10% of my home used as an office for paperwork and web design, but with the dog activity I'd conservatively increase this to 25%, if it's allowable Until recently, I worked up to 16 hours a day, from my morning dogsit away to my evening dogsit away. (2) When I don't have time to make it home for meals, are those purchased allowable as business expenses? Lastly (3) some of my clients have continued to send money since my business declined due to covid. I haven't provided services in exchange, and a few clients I haven't worked for in months. Would these be considered tips or gifts? Thanks so much for any help you can offer!!
Here's my answer if you only run a dogsit service out of your home: You can't count any space as business space unless you use it exclusively for your business.
If you also run a child care business out of your home, you can't count additional space as business use for your child care business because of the dogs. That's because the dogs aren't part of your child care business.
Regardless of which business you are running, you can't deduct meals you eat by yourself away from your home. And, you can't deduct meals that you eat in your home under any circumstances. If you are buying meals for the children in your care, you can deduct these meals.
The money your clients pay you is income just as if you provided services for it.
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